Select the Account to Which Each of the Following Costs

question 75

Multiple Choice

Select the account to which each of the following costs would be debited. (Choices may be used more than once.)
-sales taxes paid related to a machine purchased

• A) Land
• B) Land Improvements
• C) Buildings
• D) Machinery and Equipment
• E) Expense Account

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Definitions:

Pledge

The transfer of collateral to a secured party.

Collateral

Assets pledged by a borrower to secure a loan or credit, which the lender can seize if the borrower defaults on the repayment.

Perfection

In legal and financial contexts, the process of securing an interest in property to achieve priority over third parties in relation to the property.

Secured Interest

A property interest created by agreement or by law over assets to secure the performance of an obligation, usually the payment of a debt.